Cello World Limited has informed the Exchange about Transcript
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Cello World reported Q3 FY26 revenue of INR553.7 crores with EBITDA margin of 22.1% and PAT of INR63.6 crores. Results were impacted by a one-time gratuity provision of INR7.4 crores (new labour codes) and a sharp ~40% sequential decline in steelware revenues due to BIS-related supply constraints. The Consumerware segment declined marginally, while Writing Instruments grew 11% YoY to INR86 crores and Molded Furniture fell 10.6% on weak polymer prices. Management commissioned a new insulated steel bottle plant in Rajasthan (2 of 8-10 lines operational) and guided that steelware volumes will normalize over the next two quarters, restoring EBIT margin to the normalized 22% level. For Writing Instruments, the recently acquired Cello brand combined with Unomax is targeted to deliver north of INR500 crores in FY27 and ~INR1,000 crores over the next two years. Capex was capped at ~INR150 crores for FY26 and FY27, and the Wim Plast merger is expected to conclude by Q1 FY27.
Near-term growth and margins will remain subdued over the next two quarters due to steelware stockouts and unprofitable glassware ramp-up, but management is confident of a strong recovery in H2 FY27. For shareholders, the call signals a temporary blip rather than structural weakness, with the Cello brand acquisition and steel plant ramp-up providing multi-year growth optionality.